Low tax effect rule bars departmental appeal where no CBDT circular exception is shown

Departmental appeals before the ITAT are not maintainable where the tax effect is below the monetary limit prescribed by the applicable CBDT circular, unless a recognised exception applies. The Tribunal noted that the Revenue's appeal fell below the Rs. 50 lakh threshold under CBDT Circular No. 17/2019, and the Departmental Representative could not show that any exception was attracted. Applying the binding administrative instruction on low-tax-effect appeals, the Tribunal treated the appeal as not maintainable and dismissed it as withdrawn.

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Outcome: Revenue appeal dismissed as withdrawn on the ground that the tax effect was below the monetary limit prescribed by CBDT Circular No. 17/2019 and no exception was shown to apply.

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